Robinhood (HOOD) and Coinbase (COIN) ended the week’s final session in the green, with Robinhood’s stock leading the move as US regulators took steps that could expand the local market for crypto derivatives. Shares of Robinhood rose sharply, jumping about 11% on the day to close around $94 per share, which also marked the highest level the stock has reached since February. Coinbase (COIN) was not far behind, gaining close to 7% as the exchange’s shares finished the session near $189. That level sits in the middle of the stock’s broader consolidation range of roughly $160 to $215, a band it has been trading within since late March. CFTC Sparks HOOD And COIN Rally The rally for both companies was widely attributed to action from the Commodity Futures Trading Commission (CFTC). Earlier on Friday, the agency announced it would allow US firms to offer perpetual (perps) futures trading, a potential catalyst for new product launches and expanded trading activity within the United States. In addition to that policy shift, the CFTC also moved that same day to issue a no-action letter to Coinbase. Under the regulator’s guidance, the letter permits Coinbase’s US customers to access the options and perpetuals the company already offers. Related Reading: JPMorgan CEO Goes Nuclear On CLARITY Act, Calling Coinbase’s Armstrong ‘Full Of S-t’ The impact of the regulator’s steps was not limited to Coinbase. Other US-based firms have signaled they are exploring perpetuals, including trading platform Gemini and Robinhood, which already offers the product in Europe. Mizuho analyst Dan Dolev summarized the opportunity by saying the main message from the day was that it represented a “massive market opportunity.” He added that there is potential for Coinbase and other firms to win a share of trading activity that, so far, has mostly been happening on offshore venues. Robinhood Price Targets Rise Mizuho also lifted its price target for Robinhood from $110 to $115. Separately, Citizens reiterated its “market outperform” rating and maintained a $155 price target. One item cited in the positive sentiment was Robinhood’s plan to give users the ability to connect artificial intelligence (AI) agents to their accounts for trading, as well as for credit card purchases. Related Reading: Can Ripple’s Fed Master Account Approval Trigger A New XRP Bull Run? AI Model Says $80 Is Possible Robinhood also said customers will soon be able to direct AI agents to trade equities in a separate account, with limits set by the user. Support for options, event contracts, futures, and additional products is expected to arrive later, according to the company. Featured image created with OpenArt; chart from TradingView.com
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CoinDesk sat down with Robinhood’s head of crypto, Johann Kerbrat, to get an update on its upcoming layer-2 network, its tokenized stocks program, and its staking offerings.
Robinhood (HOOD), the trading platform that gained notoriety during the meme-stock frenzy, has demonstrated a significant evolution in its business model, according to a recent report by Reuters. The company’s latest earnings reveal a surge in trading volumes across equities, options, and cryptocurrencies, indicating its ability to engage retail investors even amidst market uncertainties like high interest rates and tariff concerns. Robinhood Shows Strong Growth In Options And Equities In its second-quarter (Q2) report, the crypto platform announced transaction-based revenue of $539 million, marking a remarkable 65% increase compared to the previous year. The growth was driven by a 46% rise in options trading and a similar 65% increase in equities. Notably, revenue from cryptocurrency nearly doubled, bolstered by the firm’s recent $200 million acquisition of Bitstamp. Related Reading: Trump-Appointed Group Calls For Easier Crypto Regulations From Federal Authorities CEO Vlad Tenev noted a transformative shift in the company’s stability since its public debut in 2021. He emphasized that the current roadmap is packed with new product offerings, including tokenization and perpetual futures, suggesting a robust strategy to enhance user engagement. He said: In 2021, when we went public, it felt to me like we were much more fragile than today. But now the road map, if you look at things that we expect to deliver in the short-term, medium-term and long-term, is pretty packed. Meme-Stock Mania Resurgence Analysts at Piper Sandler highlighted that the diverse range of products available on the platform has fostered strong retail engagement, with equity and options trading reaching record levels in July. This resurgence in trading activity comes in the wake of a recent wave of meme-stock mania, reminiscent of the trading frenzy that characterized the 2021 bull cycle for the broader industry. Stocks of heavily shorted companies like Krispy Kreme and Kohl’s saw significant surges from retail investors, echoing the earlier excitement surrounding GameStop. Despite fluctuations in trading volumes, CFO Jason Warnick expressed confidence in the platform’s steady customer engagement and high retention rates, suggesting that Robinhood is well-positioned to maintain its growth trajectory. Related Reading: Chainlink Acknowledged By The White House As Key Player In Crypto Infrastructure The crypto market continues to play a pivotal role in Robinhood’s future earnings, with analysts projecting that crypto exchange Bitstamp acquisition will solidify the company’s roadmap in this sector. JPMorgan analysts believe that crypto has historically contributed about 10% to 20% of the trading platform’s revenue, and this figure is expected to rise throughout the year. Robinhood’s stock, HOOD) recently reached record highs beyond $113, pushing the company’s market capitalization close to $94 billion. Following the impressive earnings report, several brokerages have raised their price targets for the stock, with Wall Street maintaining an average “buy” rating. As of this writing, HOOD is valued at $103, recording a 3% drop on Thursday’s trading session. Featured image from DALL-E, chart from TradingView.com
Having nearly tripled in price from the April lows, the stock received a number of modest price target hikes, but no ratings upgrades.
In a developing story from Politico, a potential clash between Wall Street’s regulator and Robinhood Crypto is looming. As the Securities and Exchange Commission (SEC) prepares to scrutinize Robinhood’s cryptocurrency operations, chief legal officer Dan Gallagher is emerging as a leading candidate to head the SEC should Donald Trump secure another term as president. Potential […]
Robinhood users in Europe can now deposit and withdraw crypto using external wallets and exchanges like Binance.
Cardano founder Charles Hoskinson has raised the alarm over the implications of artificial intelligence (AI) censorship, coinciding with crypto exchange Robinhood’s recent acquisition of AI-powered investment advice platform Pluto. According to Bloomberg, the move aims to bring tailored investment strategies and analytics to Robinhood’s retail brokerage users. Still, Hoskinson’s concerns shed light on the potential […]